The rising price of corn is fueling US inflation

Don Sturber has seen a report on AP that the rising price of corn in the US is fueling inflation there.

We agree that a better way to cut the dependence on overseas oil and reduce inflationary pressures

would be to import sugar ethanol from Brazil. But that would require dropping the 50-cents-a-gallon tariff on imported ethanol. Instead, taxpayers will subsidize corn ethanol — a move that jacks up food prices.

It’s like drilling a hole in the bottom of a boat to let the water out.

That’s a nice image Don (remember the poem about the three wise men of Gotham?).

Its not the ethanol that’s the problem here, its the inefficient way its being made, compounded by grossly inefficient motor vehicles. There is the possibility that ethanol made from cellulose (waste from paper production, the parts of the corn that are thrown away and so on) that could make some difference, but unless the US stops using so much gasoline we’re going to be spitting into the ocean for a long time.

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